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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Ethereum Price Diving: Can Bulls Save This Key Support?

Aayush Jindal
Aayush Jindal
1 year ago
2 mins read
Ethereum Price Diving

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Ethereum extended its decline below the $140 support versus the US Dollar, while bitcoin dived below $8,000. ETH bulls must protect the $135 support to start a decent recovery.

  • Ether price failed to recover and declined further below $140 against the US Dollar.
  • The price is currently approaching the main $135 support and pivot area.
  • There is a new connecting bearish trend line forming with resistance near $138 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could decline heavily if it fails to stay above the $135 and $132 support levels.

Ethereum Price Turns Red

Recently, Ethereum started a downside correction below the $142 support against the US Dollar. However, it seems like there are bearish signs emerging after ETH failed to stay above the $140 support.

Similarly, bitcoin is gaining bearish momentum and now trading well below $8,000. Ripple price is also diving and it is now at a risk of a break below the $0.2000 support area.

The recent decline in Ethereum took its price towards the $135 support area. The price also settled below the $140 level and the 100 hourly simple moving average. A low is formed near $135 and the price is currently consolidating losses.

An initial resistance is near the $138 level. Besides, the 23.6% Fib retracement level of the recent slide from the $148 high to $135 low is also near $138.

More importantly, there is a new connecting bearish trend line forming with resistance near $138 on the hourly chart of ETH/USD. To start a decent recovery, Ethereum must surpass the trend line, $140, and the 100 hourly SMA.

The next resistance could be near the $142 level. It is close to the 50% Fib retracement level of the recent slide from the $148 high to $135 low. Therefore, a successful close above the $142 level might start a new uptrend and the price could continue higher towards $148 and $150.

What If ETH Fails to Stay Above $135?

On the downside, the $135 area is a crucial support for ETH. Therefore, a bearish breakdown below the $135 support could start a strong downtrend below $132 and $130 in the near term.

Ethereum Price
Ethereum Price

Looking at the chart, Ethereum price is approaching the main $135 support. It might attempt a decent recovery above $142 and $145. If not, it could dive further and revisit the $125 zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is not showing any positive signs.

Hourly RSI – The RSI for ETH/USD is now below the 50 level, with a bearish angle.

Major Support Level – $135

Major Resistance Level – $142

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Aayush Jindal
Aayush Jindal

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

Read more

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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